Deutsche Bank reported net income of EUR 4.3 billion for the full year 2011

Deutsche Bank press release:rn- Fourth quarter net income of EUR 186 millionrn- Income before income taxes (IBIT) was EUR 5.4 billion inrn2011, after impairments of EUR 0.6 billion in the CorporaternInvestment divisionrn- CIB and PCAM IBIT at EUR 6.6 billion, after EUR 1.0rnbillion specific charges in CB&S and EUR 0.2 billion specialrnnet negative impacts in PBCrn- Record IBIT in classic banking businesses of EUR 3.7rnbillionrn- Record Group revenues of EUR 33 billionrn- Pre-tax return on average active equity of 10%rn- Basel 2.5 Core Tier 1 capital ratio of 9.5%; above EBArnrequirement ahead of timern- Liquidity reserves of EUR 219 billionrn- Cash dividend recommendation of EUR 0.75 per sharernrnCorporate & Investment Bank (CIB): Resilient 2011rnperformance despite difficult market conditions and lowrnlevels of industry wide activityrnrn- IBIT of EUR 4.0 billion after EUR 0.7 billion specificrncharges mainly related to litigation and a charge of EUR 0.3rnbillion relating to an impairment of a German VAT claimrn- #1 Global Fixed Income market share, #1 US Fixed Incomernmarket share (source: Greenwich Associates), #1 Global PrimernBrokerage (source: Global Custodian), #1 EMEA CorporaternFinance fees (source: Dealogic)rn- Sales & Trading revenues of EUR 11 billion reflect solidrnperformance, despite lower client activity and high marketrnvolatility during the second half of the year, validatingrnthe success of our recalibrated modelrn- Origination and Advisory impacted by lower market issuancernlevelsrn- Global Transaction Banking (GTB) generated record fullrnyear revenues of EUR 3.6 billion and IBIT of EUR 1.1 billionrndriven by strong results across all businessesrnrnPrivate Clients and Asset Management (PCAM): Record fullrnyear IBIT of EUR 2.5 billionrnrn- Private & Business Clients (PBC) record IBIT of EUR 1.8rnbillion. Revenues in PBC include a negative impact of EURrn0.5 billion related to impairments on Greek government bondsrnas well as a positive one-time impact of EUR 0.3 billionrnrelated to our stake in Hua Xia Bank, driven by thernapplication of equity method accountingrn- Asset and Wealth Management (AWM) IBIT of EUR 767 million,rnmore than triple the previous year’s performance,rnreflecting the successful integration of Sal. Oppenheim andrnthe benefits of efficiency measuresrnrnDeutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today reportedrnpreliminary unaudited figures for the fourth quarter and thernfull year 2011. For the year 2011, net income was EUR 4.3rnbillion versus EUR 2.3 billion in 2010. Diluted earnings perrnshare were EUR 4.30 compared with EUR 2.92 for the yearrnended December 31, 2010. Per the group’s targetrndefinition, which excludes significant gains and charges,rnpre-tax return on average active equity was 9.8% in 2011rncompared to 14.7% in 2010.rnrnThe Management Board and Supervisory Board will propose arncash dividend of EUR 0.75 per share for 2011 at the annualrngeneral meeting.rnrnDr. Josef Ackermann, Chairman of the Management Board said:rn”Once again, Deutsche Bank has proved its ability to deliverrnsubstantial earnings in challenging conditions. In 2011, ourrnclassic banking business produced record earnings, thusrncounterbalancing the impact of weak markets in investmentrnbanking. We also significantly strengthened our capitalrnbase, boosted our liquidity reserves and reinforced ourrnfunding position. All in all, we have built an excellentrnplatform to continue on the successful path of recentrnyears.”rnrnGroup Results of OperationrnrnNet revenues for the quarter were EUR 6.9 billion, down 7%rnfrom the record fourth quarter revenues of EUR 7.4 billionrnin 2010.rnrnIn CIB, net revenues were down 26% in the fourth quarterrn2011 to EUR 3.4 billion versus EUR 4.6 billion in the fourthrnquarter 2010. The fourth quarter 2011 featured continuedrnmarket uncertainty and lack of investor risk appetiternleading to subdued market activity. The European sovereignrndebt crisis had a particularly marked effect on activityrnlevels in Europe, where Deutsche Bank has a substantialrnportion of its business.rnrnPCAM net revenues were EUR 3.5 billion in the fourth quarterrn2011, up 22% compared to revenues of EUR 2.8 billion in thernfourth quarter 2010. The increase primarily reflects thernfull quarter revenue contribution from Postbank. In 2010rnPostbank was only fully consolidated for the month ofrnDecember. In the fourth quarter 2011 revenues were impactedrnby impairments of EUR 144 million on Greek government bondsrnand lower revenues from investment products in AssetrnManagement and Private Wealth Management due to a morernchallenging market environment.rnrnNet revenues for the full year 2011 were EUR 33.2 billion,rnup EUR 4.7 billion, or 16% versus the full year 2010. Thernincrease is mainly a result of revenues from businessesrnacquired in 2010, namely Postbank and, to a lesser extent,rnSal. Oppenheim and the commercial banking activitiesrnacquired from ABN AMRO in the Netherlands.rnrnProvision for credit losses was EUR 540 million in thernquarter, versus EUR 406 million in the fourth quarter 2010.rnThe increase was mainly attributable to the full quarterrninclusion of Postbank, which contributed EUR 178 million forrnthe quarter. This number excludes releases from Postbankrnrelated loan loss allowances recorded prior to consolidationrnof EUR 91 million. The impact of such releases is reportedrnas net interest income on the group level. ExcludingrnPostbank, provisions for credit losses were up EUR 13rnmillion versus the prior year quarter driven by an increasernin provisions for IAS 39 reclassified assets being partiallyrnoffset by improved performance in the Private & BusinessrnClients Advisory Banking Germany and International creditrnportfolios.rnrnProvision for credit losses was EUR 1.8 billion for the fullrnyear 2011 versus EUR 1.3 billion in 2010. The increase wasrnmainly attributable to Postbank, which contributed EUR 761rnmillion for the year. This number excludes releases fromrnPostbank related loan loss allowances recorded prior tornconsolidation of EUR 402 million. Excluding Postbank,rnprovisions were down EUR 139 million primarily reflectingrnimproved performance in the Private & Business ClientsrnAdvisory Banking Germany and International.rnrnNoninterest expenses were EUR 6.7 billion in the quarter, anrnincrease of EUR 395 million, or 6%, compared to EUR 6.3rnbillion in the fourth quarter 2010. General andrnadministrative expenses increased in the fourth quarter 2011rnto EUR 3.7 billion versus EUR 3.1 billion in the fourthrnquarter 2010. Consolidation effects from acquisitions werernresponsible for approximately EUR 240 million of thisrnincrease. General and administrative expenses in the fourthrnquarter 2011 also reflected approximately EUR 380 million ofrnlitigation related expenses in CB&S, charges for the UK andrnGerman bank levies of EUR 154 million in C&A and anrnimpairment charge related to the Cosmopolitan Resort of EURrn135 million in CI. These increases were partially offset byrnefficiency gains related to the Complexity ReductionrnProgram. Compensation and benefits expenses of EUR 2.8rnbillion in the fourth quarter 2011 decreased by 9% comparedrnto EUR 3.1 billion in the fourth quarter 2010. Lowerrnperformance related compensation expenses were partiallyrnoffset by increases in salaries and benefits due tornconsolidation effects from acquisitions.rnrnFor the full year 2011, noninterest expenses were EUR 26.0rnbillion, an increase of EUR 2.7 billion, or 11%, versus EURrn23.3 billion for the full year 2010. EUR 2.9 billion, thernentirety of the increase, were attributable to acquisitions,rnmost notably the full year consolidation of Postbank and torna lesser extent the commercial banking operations of ABNrnAMRO in the Netherlands and Sal. Oppenheim. Excludingrnconsolidation effects, noninterest expenses were slightlyrndown. Lower performance related compensation expenses andrnefficiency gains from the Complexity Reduction Program andrnthe CIB integration program as well as lower policyholderrnbenefits and claims (mainly Abbey Life) were partly offsetrnby higher specific charges in CB&S (EUR 655 millionrnlitigation related expenses and a specific charge of EUR 310rnmillion relating to the impairment of a German VAT claim),rnincreased costs from Corporate Investments and the firstrntime consideration of the German and UK bank levies. Therncomplexity reduction program successfully achievedrnincremental savings of approximately EUR 550 million whichrnis well above the EUR 500 million incremental savingsrnplanned for 2011. Moreover the increased savings werernachieved with a EUR 40 million under spend of the plannedrnEUR 190 million cost-to-achieve.rnrnLoss before income taxes was EUR 351 million in the fourthrnquarter 2011 compared to income before income taxes of EURrn707 million in the fourth quarter 2010. The result reflectsrnthe extreme market conditions due to the sovereign debtrncrisis and the subsequent slowdown in client activity,rnmainly impacting CB&S.rnrnIncome before income taxes was EUR 5.4 billion for the fullrnyear 2011, an increase of EUR 1.4 billion compared to thernfull year 2010. Each of our classic banking businessesrnincreased pre-tax profit versus full year 2010.rnrnNet income for the fourth quarter 2011 was EUR 186 millionrncompared to a net income of EUR 605 million in the fourthrnquarter 2010. In the current quarter a tax benefit of EURrn537 million was recorded versus an income tax expense of EURrn102 million for the fourth quarter 2010. The tax benefitrnrecorded in the current quarter primarily benefited fromrnchanges in the recognition and measurement of deferred taxesrnand a favorable geographic mix of income. The income taxrnexpense in the fourth quarter 2010 mainly benefited fromrnimproved U.S. income tax positions.rnrnNet income in the full year 2011 was EUR 4.3 billion versusrnEUR 2.3 billion in 2010. In 2011, income tax expense was EURrn1.1 billion, which led to an effective tax rate of 20%rncompared to an income tax expense of EUR 1.6 billion and anrneffective tax rate of 41% in 2010. The current year’srneffective tax rate primarily benefited from changes in thernrecognition and measurement of deferred taxes, a favorablerngeographic mix of income and the partial tax exemption ofrnnet gains related to our stake in Hua Xia Bank. The priorrnyear’s effective tax rate of 41% was impacted by arnPostbank related charge of EUR 2.3 billion which did notrnresult in a tax benefit.rnrnCore Tier 1 capital ratio was 9.5% at the end of the fourthrnquarter and the Tier 1 capital ratio was 12.9% in each casernapplying the Basle 2.5 rules. During the fourth quarter,rnrisk weighted assets increased by EUR 44 billion including arnEUR 54 billion increase in relation to the implementation ofrnthe Basel 2.5 requirements. Other notable movements includedrna EUR 23 billion reduction in credit risk weighted assetsrnand a EUR 14 billion increase in risk weighted assets fromrnoperational risk principally due to a new safety marginrntaken to cover unforeseen legal risks from the financialrncrisis. Core Tier 1 capital increased from EUR 34 billion tornEUR 36 billion including a EUR 0.9 billion Basel 2.5 effectrnof lower capital deductions in relation to trading bookrnsecuritization positions now reflected as risk weightedrnassets.rnrnTotal assets were EUR 2,164 billion at year end 2011 versusrnEUR 1,906 billion at year end 2010. On an adjusted basis,rnwhich reflects netting of derivatives and certain otherrnbalances, total assets were EUR 1,267 billion, a year overrnyear increase of EUR 57 billion, predominately driven byrnincreases in interest earning deposits with banks andrnforeign exchange effects. The leverage ratio, as per ourrntarget definition, improved to 21 from 23 at the end of 2010rndriven by increased adjusted equity predominately fromrnretained earnings.rnrnSegment Results of OperationsrnrnCorporate & Investment Bank Group Division (CIB)rnrnCorporate Banking & Securities Corporate Division (CB&S)rnrnCurrent quarter performance was severely impacted by ongoingrnconcerns around the European sovereign crisis and an overallrnuncertain macroeconomic environment. This resulted inrnsignificantly reduced client activity across the industryrnand a decline in volumes across many products.rnrnSales & Trading (debt and other products) net revenues werernEUR 1.0 billion in the fourth quarter 2011, a decrease ofrnEUR 569 million, or 35%, compared to the fourth quarterrn2010. Credit revenues were significantly lower in both flowrnand client solutions, reflecting weakened credit markets,rnlower client volumes and reduced liquidity. RMBS andrnCommodities revenues were also significantly lower due tornsubdued levels of activity and a less favorable environment.rnEmerging Markets revenues were higher despite the difficultrnmarket environment and Money Markets revenues werernsignificantly higher benefitting from volatile markets.rnRevenues in Foreign Exchange and Rates were in line with thernprior year quarter reflecting strong client activity, withrnrecord client volumes for a fourth quarter in ForeignrnExchange. During the quarter, Deutsche Bank won a number ofrnInternational Financing Review (IFR) Awards, including BondrnHouse of the Year.rnrnFor the full year 2011, Sales & Trading (debt and otherrnproducts) net revenues were EUR 8.6 billion, a decrease ofrnEUR 1.3 billion, or 14%, compared to the full year 2010rnwhich included charges related to Ocala Funding LLC of EURrn360 million. Revenues in Credit were significantly lowerrnthan the prior year, predominantly in Flow Credit,rnreflecting weakened credit markets, lower client volumesrnacross the industry, and reduced liquidity especially in thernlatter half of the year. However absolute performance inrnclient solutions was strong reflecting demand forrnrestructuring capabilities. Deutsche Bank was voted CreditrnDerivatives House of the Year by IFR and Risk magazines.rnRates and Emerging Markets revenues were lower than thernprior year primarily due to lower flow client volumes as arnresult of market uncertainty, although Deutsche Bank wasrnranked number one in Interest Rate Derivatives globally forrnthe second consecutive year (source: Greenwich Associates)rnand was awarded Interest Rate Derivatives House of the Yearrnby Risk magazine. RMBS revenues were significantly higherrnthan the prior year as a result of a successful businessrnrealignment and the absence of prior year losses. MoneyrnMarkets revenues were higher than the prior year, driven byrnstrong client activity and volatile markets. ForeignrnExchange revenues were very strong, with record annualrnclient volumes offsetting lower margins and Deutsche Bankrnwas ranked #1 by the Euromoney FX Survey by market share forrnthe seventh consecutive year. Commodities delivered recordrnannual revenues despite a challenging environment,rnreflecting successful strategic investment. Deutsche Bankrnwas awarded Most Innovative Commodity House by The Bankerrnmagazine. During 2011, Deutsche Bank was also ranked numberrnone in Global and U.S. Fixed Income for the secondrnconsecutive year (source: Greenwich Associates).rnrnSales & Trading (equity) generated net revenues of EUR 539rnmillion in the fourth quarter 2011, a decrease of EUR 333rnmillion, or 38%, compared to the fourth quarter 2010,rnreflecting more challenging market conditions and lowerrnlevels of client activity. Cash Trading revenues were lowerrnthan 2010 due to the deterioration in sentiment in equityrnmarkets particularly in Europe, although market sharernincreased in the U.S. (source Bloomberg). Equity Derivativesrnrevenues were significantly lower reflecting reduced clientrnactivity and volatile market conditions while Prime Financernrevenues were lower reflecting reduced levels of clientrnleverage.rnrnFor the full year, Sales & Trading (equity) generatedrnrevenues of EUR 2.4 billion, a decrease of EUR 686 million,rnor 22%, compared to 2010. This development reflects a morerndifficult market environment, with higher volatility andrndeclining markets impacting client sentiment and activity,rnespecially in Europe, which accounts for a high proportionrnof our business. Cash Trading revenues were lower than 2010rndue to the impact of the deterioration in equity marketsrnduring 2011 and lower client activity in Europe. DeutschernBank increased its cash equities market share in the U.S.rnaccording to Greenwich Associates, which is a result ofrnstrategic investments, and was ranked number one in EuropeanrnResearch (source: Institutional Investor). EquityrnDerivatives revenues were lower as a result of a morernchallenging environment and lower client activity, althoughrnrecord revenues were achieved in the U.S.. Prime Financernrevenues were slightly lower reflecting reduced levels ofrnclient leverage, partially offset by our strong marketrnposition. During 2011, Deutsche Bank was ranked #1 GlobalrnPrime Broker (source: Global Custodian) for the fourthrnconsecutive year.rnrnOrigination and Advisory generated revenues of EUR 430rnmillion in the fourth quarter 2011, a decrease of EUR 380rnmillion, or 47%, compared to the fourth quarter 2010.rnAdvisory revenues were EUR 172 million, a decrease of EUR 9rnmillion, or 5%, compared to the prior year quarter. DebtrnOrigination revenues of EUR 191 million, and EquityrnOrigination revenues of EUR 67 million were significantlyrnlower than the fourth quarter 2010, down 35% and 80%rnrespectively, reflecting considerably reduced levels ofrnmarket issuance.rnrnFor the full year, Origination and Advisory generatedrnrevenues of EUR 2.2 billion in 2011, a decrease of EUR 244rnmillion, or 10%, compared to full year 2010. Deutsche Bankrnended the year ranked #6 globally according to Dealogic,rnvery close to the number five ranked firm, and ranked thernclear number one in EMEA for a second consecutive year.rnDeutsche Bank was also ranked number four in Asia, up fromrnnumber six in the prior year. Advisory revenues were EUR 621rnmillion, an increase of EUR 48 million, or 8%, compared torn2010, and Deutsche Bank was ranked #2 in EMEA and #4 inrncrossborder M&A. Debt Origination revenues were EUR 1.1rnbillion, a decrease of EUR 144 million, or 12%, compared torn2010. Deutsche Bank was ranked #3 in High Yield and #2 inrnthe All International Bonds league table (source: ThomsonrnReuters). Equity Origination revenues were EUR 559 million,rna decrease of EUR 147 million, or 21%, compared to 2010.rnDeutsche Bank was ranked #1 in EMEA. All ranks sourced fromrnDealogic unless stated.rnrnLoan products revenues were EUR 344 million in the fourthrnquarter 2011, an increase of EUR 61 million, or 22%, on thernprior year quarter. For the full year, revenues were EUR 1.5rnbillion in 2011, a decrease of EUR 78 million, or 5%, fromrnlast year. The decrease was mainly driven by the transfer ofrna single loan exposure to Corporate Investments at thernbeginning of 2011.rnrnNet revenues from Other products were EUR 106 million in thernfourth quarter 2011, a decrease of EUR 29 million from thernprior year quarter. For the full year, revenues were EUR 138rnmillion in 2011, compared to EUR 449 million in 2010. Therndecrease was mainly driven by lower mark-to-market gains onrninvestments held to back insurance policyholder claims inrnAbbey Life, which are offset in noninterest expenses.rnrnIn provision for credit losses CB&S recorded a net charge ofrnEUR 145 million in the fourth quarter 2011, compared to arnnet charge of EUR 89 million in the prior year quarter. Forrnthe full year, CB&S recorded a net charge of EUR 304 millionrnin 2011, compared to a net charge of EUR 375 million inrn2010.rnrnNoninterest expenses were EUR 2.7 billion in the fourthrnquarter 2011, a decrease of EUR 284 million, or 9%, comparedrnto the fourth quarter 2010. This decrease was primarilyrndriven by lower performance related compensation expensesrnand the non-recurrence of integration related severancernexpenses included in the prior year quarter, partly offsetrnby specific charges of approximately EUR 380 million, mainlyrnrelated to litigation. For the full year, noninterestrnexpenses were EUR 11.7 billion in 2011, a decrease of EURrn472 million compared to 2010. This decrease was primarilyrndriven by lower performance related compensation expenses,rnefficiency savings and the impact of the aforementionedrneffects from Abbey Life, partly offset by EUR 655 million ofrnspecific charges, mainly related to litigation and arnspecific charge of EUR 310 million relating to thernimpairment of a German VAT claim.rnrnLoss before income taxes in CB&S was EUR 422 million in thernfourth quarter 2011, compared to a profit of EUR 603 millionrnin the prior year quarter. For the full year, income beforernincome taxes was EUR 2.9 billion in 2011, compared to EURrn5.0 billion in the prior year.rnrnGlobal Transaction Banking Corporate Division (GTB)rnrnIn the fourth quarter 2011, GTB generated net revenues ofrnEUR 929 million, an increase of EUR 62 million, or 7%,rncompared to the fourth quarter 2010. Most businessesrngenerated higher revenues than in the prior year quarter.rnCash Management improved fee income predominantly on thernback of increased payment volumes and FX transactions. TradernFinance generated stronger net interest revenues fromrnsubstantial growth in financing products.rnrnFor the full year, GTB’s net revenues were a record EURrn3.6 billion, an increase of 7%, or EUR 229 million, comparedrnto 2010 which included EUR 216 million related to negativerngoodwill from the acquisition of the commercial bankingrnactivities in the Netherlands. This increase was driven by arnrecord performance across all businesses with growth in feernand interest income. Trust & Securities Services profitedrnfrom improved market conditions in the custody andrndepositary receipt business. Trade Finance furtherrncapitalized on high demand for international trade productsrnand financing. In Cash Management, revenues increased on thernbasis of higher fees from strong payment volumes as well asrnhigher net interest income mainly driven by slightlyrnimproved interest rate levels in Asia and the euro arearncompared to the prior year period.rnrnGTB’s provision for credit losses was EUR 64 million inrnthe fourth quarter 2011, an increase of EUR 10 millionrncompared to the prior year quarter, reflecting specificrnTrade Finance related items in Europe. For the full year,rnprovision for credit losses was EUR 158 million. The netrnincrease of EUR 45 million versus 2010 was mainly related tornthe commercial banking activities acquired in thernNetherlands.rnrnNoninterest expenses were EUR 581 million in the fourthrnquarter 2011, down EUR 115 million, or 17%, compared to thernfourth quarter 2010. The decrease was mainly driven by thernnon-recurrence of significant severance charges of EUR 130rnmillion in the prior year quarter which related to specificrnmeasures associated with the realignment of infrastructurernareas and sales units. This was partially offset by higherrnexpenses related to the amortization of an upfront premiumrnpaid for credit protection received in the aforementionedrnacquisition in the fourth quarter 2011.rnrnFor the full year, GTB’s noninterest expenses were EUR 2.3rnbillion, a slight increase compared to 2010. The increasernwas driven by the aforementioned acquisition in the secondrnquarter 2010 including amortization costs for the creditrnprotection and higher insurance related expenses. Thesernfactors were partially offset by the non-recurrence of thernaforementioned severance charges. The prior year includedrnthe impact of an impairment of intangible assets.rnrnIncome before income taxes was EUR 284 million for thernquarter, an increase of EUR 167 million, or 144%, comparedrnto the prior year quarter. For the full year, income beforernincome taxes was EUR 1.1 billion, an increase of EUR 158rnmillion, or 16%, compared to EUR 965 million for 2010.rnrnPrivate Clients and Asset Management Group Division (PCAM)rnrnAsset and Wealth Management Corporate Division (AWM)rnrnAWM recorded net revenues of EUR 909 million in the fourthrnquarter 2011, down EUR 101 million, or 10%, compared to thernfourth quarter last year. Revenues in Private WealthrnManagement (PWM) decreased by EUR 95 million, primarilyrndriven by non-recurring items in the fourth quarter 2010rnrelated to Sal. Oppenheim. Furthermore, negative marketrnconditions and low client activities resulted in lowerrnrevenues across the businesses mostly impactingrndiscretionary portfolio management / fund management andrnadvisory / brokerage products. In Asset Management (AM), netrnrevenues declined by EUR 6 million compared to the fourthrnquarter 2010. Revenues from discretionary portfoliornmanagement/fund management were down by EUR 58 million duernto lower asset based fees and performance fees resultingrnfrom negative market conditions and flows. This decrease wasrnpartly offset by EUR 52 million higher revenues in AM’srnother products, primarily due to gains on sales of RREEFrninvestments.rnrnFor the full year 2011, net revenues in AWM were EUR 3.8rnbillion, up EUR 88 million, or 2%, versus 2010. In PWM,rnrevenues increased by EUR 51 million. Revenues from otherrnproducts were EUR 244 million in 2011 compared to EUR 179rnmillion in the previous year. This increase mainly resultedrnfrom effects related to the wind-down of various non-corernbusinesses in Sal. Oppenheim in 2010. Revenues from depositsrnand payment services were up EUR 19 million versus 2010,rnmainly due to higher deposit volumes driven by dedicatedrnproduct initiatives. Discretionary portfolio management/fundrnmanagement revenues decreased by EUR 28 million driven byrnreduced asset based fees and lower performance feesrnresulting from negative market conditions in the second halfrnof 2011. PWM’s revenues from advisory/brokerage and fromrncredit products were essentially unchanged versus thernprevious year. In AM, revenues increased by EUR 37 million,rnprimarily driven by EUR 83 million gains on sales in 2011,rnmainly related to RREEF investments reported in revenuesrnfrom other products. Partly offsetting were lower revenuesrnfrom discretionary portfolio management/fund managementrndriven by weak market conditions and flows.rnrnProvision for credit losses was EUR 11 million in the fourthrnquarter 2011, essentially in line with the same quarter lastrnyear. For the full year, provision for credit losses was EURrn55 million, up EUR 16 million compared to 2010, primarilyrnattributable to Sal. Oppenheim.rnrnNoninterest expenses were EUR 733 million in the fourthrnquarter 2011, down EUR 204 million, or 22%, compared to thernfourth quarter 2010. In PWM, noninterest expenses decreasedrnby EUR 164 million, mainly driven by the non-recurrence ofrnintegration costs related to Sal. Oppenheim in the fourthrnquarter 2010. AM’s noninterest expenses declined by EUR 40rnmillion, driven by measures to improve platform efficiency.rnrnFor the full year 2011, noninterest expenses were EUR 2.9rnbillion, a decrease of EUR 485 million, or 14%, compared torn2010. In PWM, noninterest expenses decreased by EUR 344rnmillion, mainly driven by benefits in 2011 resulting fromrnthe successful integration of Sal. Oppenheim. In AM,rnnon-interest expenses declined by EUR 141 million mainlyrnreflecting the impact of measures to improve platformrnefficiency.rnrnAWM recorded in the fourth quarter 2011 income before incomerntaxes of EUR 165 million, compared to EUR 59 million in thernfourth quarter 2010. The increase included EUR 71 million inrnPWM and EUR 35 million in AM.rnrnFor the full year 2011, AWM recorded income before incomerntaxes of EUR 767 million versus EUR 210 million in 2010. Thernincrease included EUR 378 million in PWM and EUR 179 millionrnin AM.rnrnInvested Assets in AWM were EUR 813 billion as of 31rnDecember 2011, up EUR 33 billion compared to September 30,rn2011. During the fourth quarter 2011, invested assets in PWMrnincreased by EUR 5 billion, mainly driven by foreignrncurrency movements in the fourth quarter 2011, partly offsetrnby net outflows of EUR 3 billion resulting from certainrncustomer relationships. In AM, invested assets were up EURrn28 billion, including net inflows of EUR 8 billion, mainlyrnin the cash business. The increase also reflected EUR 10rnbillion from foreign currency movements and EUR 9 billionrnfrom market appreciation.rnrnFrom a full year perspective, AWM’s invested assetsrndecreased by EUR 13 billion, thereof EUR 7 billion in PWMrnand EUR 6 billion in AM. The decline in PWM included anrnimpact of EUR 13 billion due to market depreciation, partlyrnoffset by EUR 4 billion net new assets, mainly in Asia andrnGermany. The decrease in AM included EUR 13 billion netrnoutflows. Outflows in the cash and equity business,rnreflecting investor uncertainty, were partly offset byrninflows in higher margin products. Partly compensating thernoverall net outflows in AM were EUR 7 billion due to foreignrncurrency movements.rnrnPrivate & Business Clients Corporate Division (PBC)rnrnNet revenues in the fourth quarter 2011 were EUR 2.6rnbillion, up EUR 731 million, or 40%, compared to the fourthrnquarter 2010. The improvement was attributable to revenuesrnfrom other products which increased EUR 767 million comparedrnto the fourth quarter 2010. This increase was mainly drivenrnby the consolidation of Postbank, which began on December 3,rn2010 and contributed EUR 720 million to the improvement inrnrevenues, after impairments of EUR 135 million on Greekrngovernment bonds in the fourth quarter 2011. The remainingrnincrease in revenues from other products in PBC mostlyrnrelated to our equity method investment in Hua Xia Bank.rnPBC’s revenues from advisory / brokerage revenues wererndown by EUR 25 million, or 11%, compared to the fourthrnquarter 2010 primarily in Advisory Banking Germany. Revenuesrnfrom discretionary portfolio management/fund managementrndecreased by EUR 25 million, or 34%. Revenues in bothrnproduct categories were affected by the difficult marketrnconditions in the fourth quarter 2011. Revenues fromrndeposits and payment services were EUR 513 million,rnessentially unchanged compared to the fourth quarter 2010.rnNegative effects from lower margins were offset by thernpositive impact of higher volumes. Credit product revenuesrnincreased by EUR 15 million, compared to the fourth quarterrn2010, driven by higher commercial and consumer loan revenuesrnin Advisory Banking International as well as higher revenuesrnfrom mortgages in Germany.rnrnFor the full year 2011, net revenues were EUR 10.6 billion,rnup EUR 4.5 billion, or 73%, versus 2010. This developmentrnwas mainly attributable to the aforementioned consolidationrnof Postbank, which contributed EUR 4.2 billion. PBC’srnrevenues in 2011 were impacted by EUR 527 millionrnimpairments on Greek government bonds, of which EUR 465rnmillion were in Postbank and EUR 62 million were in AdvisoryrnBanking Germany. The remaining increase in PBC’s revenuesrnincluded a one-time positive impact of EUR 263 millionrnrelated to our stake in Hua Xia Bank, driven by thernapplication of equity method accounting upon receiving allrnsubstantive regulatory approvals to increase our stake, andrnhigher deposit and payment revenues of EUR 124 millionrnresulting from increased deposit volumes.rnrnProvision for credit losses was EUR 311 million in thernfourth quarter 2011, of which EUR 178 million related tornPostbank. This number excludes releases from Postbankrnrelated loan loss allowance recorded prior to consolidationrnof EUR 91 million. The impact of such releases is reportedrnas net interest income. Excluding Postbank, provisions forrncredit losses were EUR 133 million, down EUR 51 millionrncompared to the same quarter last year. This decrease wasrndriven by lower provisions of EUR 31 million in AdvisoryrnBanking Germany, mainly in the consumer finance andrnmortgages business, and of EUR 20 million in AdvisoryrnBanking International.rnrnFor the full year 2011, provision for credit losses was EURrn1.3 billion, of which EUR 761 million related to Postbank.rnThis number excludes aforementioned releases of EUR 402rnmillion for the full year. Excluding Postbank, provisionsrnfor credit losses were EUR 548 million, down EUR 142 millionrncompared to 2010. The decrease was driven by both AdvisoryrnBanking Germany and Advisory Banking International, mainlyrnPoland.rnrnNoninterest expenses were EUR 2.0 billion in the fourthrnquarter 2011, an increase of EUR 629 million, or 46%,rncompared to the fourth quarter 2010. The increase includedrnEUR 553 million related to the consolidation of Postbank.rnExcluding Postbank and costs related to Postbank integrationrnreflected in Advisory Banking Germany, noninterest expensesrnwere up EUR 46 million, or 4%, including a provision takenrnfor a credit card joint venture with Hua Xia Bank.rnrnFor the full year, noninterest expenses were EUR 7.3rnbillion, an increase of EUR 2.8 billion, or 63%, compared torn2010. The increase was predominantly driven by thernaforementioned consolidation of Postbank. Excluding thernPostbank related increase, noninterest expenses were down byrnEUR 64 million, mainly resulting from measures to reducerncomplexity and to improve platform efficiency.rnrnIncome before income taxes was EUR 227 million in the fourthrnquarter, an increase of EUR 5 million compared to the fourthrnquarter 2010. The contribution of Consumer Banking Germanyrnto income before income taxes was EUR 90 million in thernfourth quarter 2011, after a negative impact of EUR 108rnmillion related to Greek government bonds (impairment chargernof EUR 135 million, net of noncontrolling interests atrnsegment level of EUR 26 million). Income before income taxesrnin Consumer Banking Germany was EUR 72 million in the fourthrnquarter 2010. Advisory Banking Germany contributed EUR 85rnmillion (compared to EUR 140 million in the fourth quarterrn2010) and Advisory Banking International contributed EUR 51rnmillion (compared to EUR 11 million in the fourth quarterrn2010), respectively.rnrnFor the full year 2011, income before income taxes was EURrn1.8 billion, an increase of EUR 892 million compared torn2010. Consumer Banking Germany contributed EUR 643 millionrnto income before income taxes in 2011, after a negativernimpact of EUR 373 million related to Greek government bondsrn(the aforementioned impairment charge of EUR 465 million,rnnet of noncontrolling interests at segment level of EUR 92rnmillion), and EUR 72 million in 2010. Advisory BankingrnGermany contributed EUR 572 million and EUR 663 million tornincome before income taxes in 2011 and 2010, respectively.rnIncome before income taxes in Advisory Banking Internationalrnwas EUR 567 million in 2011 and EUR 155 million in 2010.rnrnInvested assets were EUR 304 billion as of December 31,rn2011, essentially unchanged compared to September 30, 2011,rnwith EUR 2 billion net outflows, primarily in deposits, andrnEUR 3 billion due to market appreciation offsetting eachrnother. For the full year 2011, invested assets remainedrnvirtually unchanged. This was mainly driven by EUR 9 billionrndue to market depreciation, partly offset by EUR 8 billionrnnet inflows, mainly in deposits.rnrnPBC’s total number of clients was 28.6 million, of whichrn14.1 million related to Postbank.rnrnCorporate Investments Group Division (CI)rnrnNet revenues in the fourth quarter 2011 were negative EURrn193 million, after an impairment charge of EUR 407 millionrnrelated to our interest in the generic pharmaceutical grouprnActavis. Net revenues also included revenues from ourrnconsolidated investments in BHF-BANK, Maher Terminals andrnThe Cosmopolitan of Las Vegas and from our interest inrnActavis. In the comparison period 2010, net revenues werernnegative EUR 40 million.rnrnFor the full year, net revenues were EUR 394 million.rnRecurring revenues from our aforementioned positions werernpartly offset by impairment charges of EUR 457 millionrnrelated to Actavis (of which EUR 50 million were recorded inrnthe first nine months of 2011). In the full year 2010,rnCI’s revenues of negative EUR 1.8 billion mainly includedrna Postbank related charge of EUR 2.3 billion.rnrnNoninterest expenses were EUR 520 million in the fourthrnquarter 2011 versus EUR 343 million in the fourth quarterrn2010. The increase compared to the prior year quarter mainlyrnrelated to The Cosmopolitan of Las Vegas, for which anrnimpairment charge of EUR 135 million on the property wasrnrecorded in the fourth quarter 2011. Also contributing tornthe increase was our investment in BHF-BANK, includingrnspecial items of EUR 97 million.rnFor the full year, noninterest expenses were EUR 1.5 billionrnversus EUR 967 million in the prior year. The increase wasrnessentially due to The Cosmopolitan of Las Vegas and wasrnmainly related to the start of its operations at the end ofrn2010 and to a lesser extent to the aforementioned impairmentrncharge on the property.rnrnCI recorded a loss before income taxes of EUR 722 million inrnthe fourth quarter 2011, compared to a loss before incomerntaxes of EUR 390 million in the same period 2010.rnrnFor the full year 2011, loss before income taxes amounted tornEUR 1.1 billion compared to a loss before income taxes ofrnEUR 2.8 billion in the prior year.rnrnConsolidation & Adjustments (C&A)rnrnIncome before income taxes in C&A was EUR 117 million in thernfourth quarter 2011 compared to EUR 98 million in the fourthrnquarter 2010. Results in the current quarter includedrnpositive effects from different accounting methods used forrnmanagement reporting and IFRS, driven by movements of Eurornand U.S. dollar short-term interest-rates, and from arnreversal of interest accruals related to income taxrnliabilities and provisions. In the fourth quarter 2011 thesernpositive effects were partly offset by charges for bankrnlevies of EUR 154 million, which in this quarter were mainlyrnrelated to the UK.rnrnFor the full year 2011, loss before income taxes was EUR 77rnmillion, compared to a loss of EUR 363 million in the priorrnyear. The loss in 2011 included net positive effects fromrndifferent accounting methods used for management reportingrnand IFRS, whereas these effects were negative in the priorrnyear. In addition, 2011 included charges for bank levies ofrnEUR 247 million, primarily related to Germany and the UK.rnThese were nearly offset by noncontrolling interests, whichrnare deducted from income before income taxes of therndivisions and reversed in C&A.